Lagos, Nigeria, October 9, 2019: Chevron Nigeria Limited (“CNL”), in its capacity as Sellers’ Representative for the Nigerian National Petroleum Corporation and itself, has signed a Gas Sale and Aggregation Agreement (“GSAA”) with Olorunsogo Generation Company Limited, Niger Delta Power Holding Company Limited (“NDPHC”) and Gas Aggregation Company Nigeria Limited (“GACN”).
The agreement was executed on behalf of the four companies by Sanjay Narasimhalu, Director, Downstream Gas, CNL; Chiedu Ugbo, MD, NDPHC; Ifeoluwa Oyedele, Executive Director, NDPHC, for Olorunsogo Generation Company Limited; and Engr Morgan Okwoche, MD/CEO, GACN, respectively.
CNL will supply on an interruptible (reasonable endeavours) basis, a daily contract quantity of 0-63,000MMbtu/d of natural gas to Olorunsogo Generation Company Limited.
The Olorunsogo generation plant at Olorunsogo, Ogun State, is an existing NDPHC electricity generation project designed to supply power of about 750MW into the national grid, support the Federal Government’s drive to develop the power sector and in-turn grow the Nigerian economy. Natural gas is the feedstock of the Olorunsogo generation plant. The GSAA for the supply of the major input needed to run the power generation plant is another demonstration of the NNPC/CNL JV’s commitment to the domestic gas market.
In his remarks, CNL’s Director, Downstream Gas, Mr. Narasimhalu noted that the NNPC/CNL JV is currently the largest and most on-spec supplier of gas to the domestic market. He stated that the JV continues to collaborate extensively with other stakeholders in finding creative solutions to issues relating to the domestic gas market. “The NNPC/CNL JV is committed to supporting the Federal Government of Nigeria’s policy to boost local industries,” he said.
The MD, NDPHC, Mr. Ugbo also emphasized the commitment of NDPHC to continuing in its drive to find lasting solutions to the power generation challenges in the country.
Corroborating the positions of the other partners, the MD/CEO of GACN, Engr Okwoche, affirmed that GACN will continue to collaborate with relevant stakeholders in proffering working solutions to issues around the domestic gas market value chain with the ultimate goal of ensuring growth in the sector.